Allowed

Principal Commissioner of Income Tax v. M/S. Mahathma Gandhi Vidyapeetha Trust

Karnataka HC19 Jun 2023ITA/469/2019

Case brief

AI extract

What is this about?

The Karnataka High Court allowed appeals filed by Income Tax Appellants against an order refusing tax exemption. The court held that expenses for travel outside India without a nexus to Indian charitable activities should be disallowed, dismissing the Revenue's appeals.

What did the court decide?

Appeals by Revenue applicants dismissed. Exemption allowed under Section 11.

Principal Commissioner of Income Tax Vs M/S. Mahathma Gandhi… — Income Tax | Karnataka HC (2023)

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NC: 2023:KHC:21220 ITA No. 469 of 2019 C/WITA No. 471 of 2019 ITA No. 473 of 2019

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 19^TH DAY OF JUNE, 2023

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PRESENT

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THE HON'BLE MR JUSTICE P.S.DINESH KUMAR

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AND

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THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA

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INCOME TAX APPEAL NO. 469 OF 2019 C/W INCOME TAX APPEAL NO. 471 OF 2019 INCOME TAX APPEAL NO. 473 OF 2019

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BETWEEN:

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PRINCIPAL COMMISSIONER OF INCOME TAX (EXEMPTIONS), UNITY BUILDING ANNEXE MISSION ROAD, BANGALORE-560 027

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DEPUTY COMMISSIONER INCOME TAX (E) , CIRCLE-1 6^TH FLOOR, UNITY BUILDING BENGALURU

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…APPELLANTS

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(COMMON IN ALL APPEALS)

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(BY SRI. SANMATHI E I., STANDING COUNSEL)

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Digitally signed by MALA K N Location: HIGH COURT OF KARNATAKA

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AND:

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M/S. MAHATHMA GANDHI VIDYAPEETHA TRUST SAVIGE MALLESWARA GHILLS KUMARASWAMY LAYOUT BENGALURU-560078

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…RESPONDENT

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(COMMON IN ALL APPEALS)

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(BY SRI. SHANKAR A. SR.ADV. FOR SRI. GURUMURTHY M.,ADVOCATE)

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NC: 2023:KHC:21220 ITA No. 469 of 2019 C/WITA No. 471 of 2019 ITA No. 473 of 2019

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ITA NO. 469 OF 2019 IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF THE ORDER DATED 15.02.2019 PASSED C.O.NO.40/BANG/2018 IN ITA NO.2707/BANG/2017 FOR THE ASSESSMENT YEAR 2012-2013 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT.

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ITA NO. 471 OF 2019 IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF THE ORDER DATED 15.02.2019 PASSED IN C.O.NO.41/BANG/2018 IN ITA NO.2708/BANG/2017 FOR THE ASSESSMENT YEAR 2012-2013 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT.

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ITA NO. 473 OF 2019 IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF THE ORDER DATED 15.02.2019 PASSED IN C.O.NO.42/BANG/2018 IN ITA NO.2709/BANG/2017 FOR THE ASSESSMENT YEAR 2014-2015 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT.

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THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR J., DELIVERED THE FOLLOWING:

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JUDGMENT

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These three appeals are directed against common order

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dated February 15, 2019 in C.O.Nos.40 to 42/Band/2018 for Assessment Years 2012-13 to 2014-15.

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Heard Shri.E.I.Sanmathi, learned Standing Counsel for Revenue and Shri.A.Shankar, learned Senior Advocate for respondent/assessee.

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NC: 2023:KHC:21220 ITA No. 469 of 2019 C/WITA No. 471 of 2019 ITA No. 473 of 2019

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Shri Shankar submitted that the only question that arises for consideration in these three appeals is:

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" Whether on the facts and in circumstances of the case, the Tribunal is right in law in allowing the exemption under Section 11 of the Act on the expenses incurred for travel outside India without appreciating that exemption under Section 11 can be allowed only if the charitable activity is performed in India and said expenses has no nexus with any charitable activity performed in India?"

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According to him, the above issue is covered by the decision of this Court in Commissioner of Income-tax (Exemptions), Bangalore -vs- Ohio University Christ College¹ .

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Shri Shankar's submission is not disputed by Shri Sanmathi.

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As prayed for by Shri.Sanmathi, the other question with regard to surplus money held by the assessee in connected is kept open.

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1 (2018) 408 ITR 352 (Karnataka)

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NC: 2023:KHC:21220 ITA No. 469 of 2019 C/WITA No. 471 of 2019 ITA No. 473 of 2019

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In view of the above, these appeals are dismissed . The above question of law recorded in para-3 above, is answered in favour of the assessee and against the Revenue. Question No.2 does not arise for consideration. Question No.1 is permitted to be urged in connected cases.

No costs.

SD/JUDGE

SD/JUDGE

KNM

List No.: 1 Sl No.: 37

Principal Commissioner of Income Tax v. M/S. Mahathma Gandhi Vidyapeetha Trust

Case brief

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Principal Commissioner of Income Tax v. M/S. Mahathma Gandhi Vidyapeetha Trust

Case brief

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